The UK government is preparing a new subsidy package for electric vehicle buyers as part of its strategy to reduce the sale of emission-heavy cars.
New UK Government Initiative
According to reports, the UK government is planning to introduce measures that could stimulate electric vehicle sales. This is the first major initiative since the plug-in grant, which provided discounts for new low-emission vehicles, ended in 2022.
Plans to Phase Out Polluting Cars
Transport Secretary Heidi Alexander confirmed plans to implement new measures aimed at increasing electric vehicle sales. However, she did not confirm reports about potential subsidies of up to £700 million. The plan also includes investing £63 million in the construction of charging stations and a £2.5 billion program to support manufacturers in transitioning to zero-emission vehicles.
Companies Set to Benefit from New Government Measures
Several companies are already actively developing and implementing electric vehicle products and infrastructure in the UK. For example, Wallbox and Believ are collaborating on fast-charging solutions, while TotalEnergies and SSE have formed a joint venture, Source, to deploy powerful charging stations across the country. Additionally, £1 billion is allocated for the construction of a battery factory in Sunderland.
Thus, the UK is taking steps to support and stimulate the purchase of electric vehicles despite current market challenges and consumer concerns regarding prices and the accessibility of charging infrastructure.
